BAE strengthens its ethical code
1 min read
The UK defence contractor BAE Systems has "significantly strengthened" its business conduct policies as it marks the third anniversary of the publication of the Woolf Committee's Report that looked into allegations of malpractice around sales inducements to foreign government buyers.
In response to the high profile investigation by Lord Woolf (pictured) BAE said it had acted upon all 23 of the Report's recommendations and rolled out a global code of conduct and supporting training.
A report from an external independent expert (Ethical Leadership Group) concluded that "we find BAE Systems has a solid business conduct program that includes many best practise components. There is also evidence of substantial progress over the last three years against the Woolf recommendations and we find that there are well designed processes and plans in place to ensure continued improvements".
However, the group also recommended that BAE needed to provide middle management with the resources and incentives to become more engaged in the business conduct programme and to take more responsibility to embed it within the company.
In an update on trading so far this year, chief executive Ian King said BAE was performing in line with expectations in a period that had been characterised by the completion of a number of acquisitions totalling £0.6bn to support the company's strategy to grow its services and electronic systems businesses.
